Bitcoin slides below $108,800 as market shows 'extreme fear' under macro headwinds

Bitcoin, ether and other major cryptocurrencies are down today as bearish macroeconomic headlines continue to weigh on market sentiment.

According to The Block's crypto price page , bitcoin traded down 1.57% in the past 24 hours to $108,757. The world's largest cryptocurrency fell below the $108,000 line earlier today, which is the lowest point since the beginning of September.

Ether is also down 1.5% below $4,000, now trading at $3,928. BNB, XRP and Solana also saw notable price declines, with the GMCI 30 — the index measuring the performance of top 30 crypto — down 2% in the past day.

"The market continues to trade around ongoing U.S.–China trade war headlines, with recent comments from Trump having the most notable impact," said Min Jung, research associate at Presto Research. "In addition, renewed concerns over the health of regional banks have weighed on major equity indexes, spilling over into the crypto market as well."

The Crypto Fear & Greed Index is pointing at 22, which indicates that the market is showing "extreme fear," the same sentiment exhibited by the U.S. stock market.

U.S. stock markets closed mostly lower on Thursday amid worries about the disclosures of bad loans from regional banks, primarily involving Zions Bancorp and Western Alliance Bancorp, both hit by fraudulent activities from the same borrowers. 

This comes alongside U.S. President Donald Trump's comments confirming that the U.S. and China are indeed in a trade war, even after Treasury Secretary Bessent sought a pause on high tariffs on China to prevent further escalation.

Market sentiment

"BTC and ETH have held up better than equities, yet thin liquidity and leverage mean any macro shock can still flip sentiment fast," said Vincent Liu, CIO at Kronos Research. "The crypto market’s showing relative resilience, but it’s fragile."

Liu pointed out that BTC and ETH have rebounded from its lowest point from earlier Thursday, which is a sign of measured "dip-buying" from traders, but noted that there is only "selective confidence, not full conviction" in the crypto market as of now.

LVRG Research Director Nick Ruck said a worst-case scenario could see bitcoin fall below $100,000 due to heightened macroeconomic or foreign policy issues, but noted that interest rate cuts from the Federal Reserve or additional spot crypto ETF approvals could drive a rebound in the fourth quarter.

"For now, crypto prices will likely continue to react to developments related to the U.S.–China trade narrative, with both downside risks and potential upside catalysts tied to the news cycle," Presto's Jung said.